Friday, March 7, 2014

Room for more upside

The made a top today but it seems like a very short term top so the market could stage a rally as soon as Monday. Technically there is a chance the market will start a bigger correction but I think it's less probable given the fact the market has been just buying time to consolidate a base to rally from for the last few days. So unless there are some really bad news over the weekend, the bias is to the upside. There is a potential bullish 1-2 on the micro count that targets 1890's and if we get these 5 waves then it will be very likely that we will see meaningful market top and a market correction to at least the Trend Average. Obviously, the market can keep doing W4 like corrections but at least they do give you the opportunity to make some money when patterns are completed.

Given how resistance held today and how this looks like another W4, I ended up selling my VXX position at a profit (20/23) and will hopefully buy them back early next week at a much lower price. 

Have a Great Weekend!

Short Term Trend = Bullish
Medium Term Trend = Bullish
Long Term Trend = Bullish

* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

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